Solar Farm Land Lease Rates Australia

As stamford texas attorney james decker explained we re still early in the era of solar energy development in.

Solar farm land lease rates australia.

Determining the value of a solar farm lease rates usually comes down to a two step process consisting of an evaluation of the land itself and the actual lease negotiation. As always i highly recommend that landowners consult an experienced attorney to review any lease agreement including a solar lease before it s signed. In general cropland rental rates are higher than hay and pasture land. Like we ve mentioned before rental fees are determined by how profitable the location will be once the solar project has been completed.

When the solar craze hits your area it may seem like the gold rush and you re sitting on the mine. Benefits leasing land for the development of a solar farm can provide land owners with 20 30 years of guaranteed annual income with no upfront investment or ongoing farming costs. Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually. On average solar rental fees will fall somewhere around 700 to 3 000 an acre.

However pinning down an exact figure of what land should rent for can be a challenge for landowners because of the wide range of data found on the internet. For example the solar farm land requirements for a 1 megawatt solar plant is around 5 acres. Solar lease rates are almost always based on both the quality and the quantity of the land assigned to the lease. How are solar farm land lease rates determined.

A solar farm lease can potentially unlock long term income without all the hard work and financial risks associated with farming. If the land lease rate is too high then the project cost increases. A reasonable cropland lease rate might be 75 per acre year. The solar company may only end up leasing a portion of the property and then as a land owner you could be left with two small fields with a solar farm in the middle.

Depending on field access one of those smaller fields may no longer be accessible if a solar project is constructed in the middle of the existing large field. New england cropland lease rates can range from 40 per acre year to 300 per acre year. What issues do i need to be aware of. I ve been contacted by a company wanting to enact a solar lease on my land.

You may be tempted to shop around for the highest lease rate but beware. On average 1 acre solar farm cost about 500 per month to lease in the united states. The above cost is non inclusive of the license fees and value of the land. The solar power purchase agreements issued by the utilities are often awarded by competitive bid.

The cost of land for 1 mw plant will therefore translate to 2 500 per month on average. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land.